Rules of Origin

• Rules of Origin


  The specific provisions, developed from principles established by national legislation or international agreements ("origin criteria"), applied by a country to determine the origin of goods
• De minimis rule


  The requirement of CTC is that ALL non-originating materials must undergo the required tariff shift. However, for a material that cannot meet the required "tariff shift" the de minimis rule provides an additional possibility for said material to qualifying as "originating". The value of the non-originating material that did not satisfy the CTC must not exceed the agreed percentage of the adjusted value of the good. (under the ATIGA: 10% of the FOB value of the good.)
• The de minimis provision does not apply to the RVC Rule
• ROO Accumulation Rule


  A good originating in a Member State, which is used in another Member State as inputs for a finished good eligible for preferential tariff treatment, shall be considered to be originating in the latter Member State where working or processing of the finished good has taken place.
• Types of Accumulation

  • Full Accumulation - Accumulation of the full value of the product from a party in an FTA territory
  • Partial Accumulation - Parties are allowed to accumulate inputs with other Member States to hurdle the ROO criterion. Tariff preference is given to the final exporting country
  • Under the ATIGA, inputs are eligible for partial cumulation, if at least 20% of the RVC of the good is originating in the contributing Member State
• Minimal Operations & Processes


  Operations or processes considered to be minimal and not be taken into account in determining whether a good is originating in one Party: ensuring preservation of goods in good condition for the purposes of transport or storage; shipment or transportation; and packaging or presenting goods for sale.
• Packages and Packing Materials


  Under the RVC criterion, their value shall be taken into account in its origin assessment, and considered to be forming a whole with the good. If the packaging and packing material or container is classified with the goods in accordance with HS GIR 5, then they are not required to meet the CTC requirement of the product specific rule that the originating good had to meet.
• Accessories, Spare Parts and Tools Imported with Originating Goods

  Under the CTC or Specific Process Rule, these shall not be taken into account in determining whether the good qualifies as an originating good, provided that: these are not invoiced separately from the originating good; and their quantities and value are customary for the imported good. Under the RVC criterion, their value shall be taken into account as the value of the originating or non-originating materials, as the case may be, in calculating the RVC of the originating good.
• Neutral Elements (Indirect Materials)


  It is not necessary to determine the origin of NEUTRAL ELEMENTS which were used in production and not incorporated into the good.
• Identical and Interchangeable Materials


  Commodities which are identical and interchangeable are also known as "Fungible Goods". These are materials being of the same kind and commercial quality, possessing the same technical and physical characteristics, and which after being incorporated into the finished product cannot be distinguished from one another for origin purposes by virtue of any markings, etc. Determined by: PHYSICAL SEGREGATION of each of the materials; or ACCOUNTING SEGREGATION of stock control applicable, or inventory management practice, in the exporting Party. Once a decision has been taken on the inventory management method, that method shall be used throughout the fiscal year.
• Self-Certification System


  The purpose of this Self-Certification Scheme is to facilitate intra-ASEAN trade, expedite and lessen the cost of doing business. Previously, there were two (2) pilot projects for Self-Certification that has been approved by the ASEAN Economic Ministers and ASEAN Free Trade Area Council. These were established to acquire knowledge and practical experience of the self-certification mechanism in preparation for the implementation of an ASEAN-Wide Self-Certification System. The ASEAN-Wide Self-Certification System was incorporated into the ATIGA through the First Protocol to Amend the ATIGA.
• Transportation of Goods (Direct Consignment)

  An originating good retains its originating status if it is transported from the exporting Party the importing Party: without passing through any non-Party; or Goods transported through one or more Parties, other than the exporting Party and the importing Party, or through a non-Party, provided that: the transit entry is justified for geographical reason or by consideration related exclusively to transport requirements; the goods have not entered into trade or consumption there; and the goods have not undergone any operation there other than unloading and reloading or any other operation to preserve them in good condition. Transportation to the importing Party through another participating Party does not affect the originating status of the good. If the good is imported into another FTA Party and then re-exported it may be eligible for a "BACK-TO-BACK CERTIFICATE" to enable it to retain originating status on the basis of the original certificate of origin. A back-to-back certificate is not required in a case of simple transshipment of the good through a participating Party, i.e. where it is not imported into that Party.
• Operational Certification Procedure for the ATIGA ROO

  OCP is the official method of implementing the Rules of Origin of the ATIGA; Covers operational procedures on the issuance and verification of the Certificate of Origin (Form D) and other related administrative matters; Attached to the ATIGA as Annex 8.
• Proof of Origin


  A Proof of Origin means a document which certifies that the goods exported meets the ROO provisions in the ATIGA. Proof of Origin may be in the form of: Certificate of Origin (Form D); Electronic Certificate of Origin (e-Form D); or Origin Declaration.
• Certificate of Origin (Form D)

  Attached as Annex 7 to the ATIGA; In ISO A4 size paper; Made in the English language; Bear a reference number separately given by each place of office of issuance; Bear the authorized signature and official seal of the issuing authority; and Comprise of one (1) original (Light violet) and two (2) carbon copies (Duplicate (Orange) and Triplicate (Orange))
• Electronic Certificate of Origin (e-Form D)


  Is a CO Form D that is structured in accordance with the ATIGA e-Form D Process Specification and Message Implementation Guideline (which is the agreed flow, processes and data structures of the electronic CO Form D and related documents). Has the equivalent legal effect as the CO Form D in paper format.
• Origin Declaration


  Is a declaration on the origin of goods made by a Certified Exporter (CE) under the ATIGA Self-Certification Scheme. Made out on the commercial invoice. If cannot be made out on the commercial invoice, it may be made out on any of the following: Billing statement; Delivery order; or Packing list. Bears the name and manually executed signature of the authorized signatories.